Make confident decisions knowing you have the best demand prediction for any time horizon
Accuracy matters. Demand predictions drive virtually every business decision in manufacturing industries and getting it right provides a significant competitive advantage. Yet most companies rely on outdated and manual demand planning processes, with most of the actual work done in spreadsheets. Traditional methods are underpinned by seasonally-adjusted time series analysis of prior sales. While this is helpful, prior sales is just one of the many demand signals available today and is inherently disconnected to what is currently happening in the supply chain. What occurred last year, let alone 2-3 years ago, is increasingly irrelevant to today’s business due to changing customer preferences, the rise of omnichannel and rampant SKU proliferation.
Masses of data are now available across the extended supply chain, including real-time information from internal operations, retailers and social media. How can this data be systematically used to better understand what your customers are thinking, doing right now and going to do next? And at the same time, how can manual processes and tedious tasks of managing spreadsheets be streamlined to improve planner productivity?
E2open's Demand Planning & Sensing uses automation and machine learning algorithms to deliver a step-change in productivity and performance. It streamlines planning activities within an integrated system, automates many manual tasks and leverages the full range of structured/unstructured data to create an accurate picture of demand for any time horizon. This enables organizations to make better supply response decisions across the board, from near-term execution to long-term capacity planning, and everything in between.
E2open’s Demand Planning and Sensing solutions are an important part of an enterprise planning system of record that overlays individual ERP systems to provide a consolidated view of demand for the organization. It also includes a wide range of advanced features for the most sophisticated supply chains.
Go beyond spreadsheets and time series analysis to achieve a new level of demand planning performance. E2open's Demand Planning solution streamlines workflows within a single integrated process to increase productivity and improve forecast accuracy for tactical and strategic planning horizons. Automating time-consuming tasks like spreadsheet reconciliation and model tuning frees planners to focus on strategic areas that create more value for the organization. Machine learning algorithms complement time series analysis to give planners a better baseline forecast that requires fewer adjustments, especially for hard to forecast activities like new product introductions and promotional events. Powerful “what-if” scenario management and demand shaping capabilities allow planners to evaluate the impacts of potential changes before committing to production. More accurate forecasts lead to fundamental improvements in supply chain operations, including better customer satisfaction, lower investment in inventory, and more stable upstream operations.
Demand quality can be further enhanced by accessing and systematically using retailer data to improve forecast accuracy (through E2open's Demand Signal Management solutions) and/or collaborating with customers through the exchange of forecasts (E2open's Forecast Collaboration solution). Demand planning works in conjunction with E2open's Supply Planning & Response to form an enterprise supply chain planning system of record.
Use real-time information to improve near-term forecast accuracy and make better execution decisions, especially in fast-moving markets. E2open's Demand Sensing solution augments existing demand planning investments by creating daily forecasts for every SKU for up to 13 weeks out. The solution monitors available demand signals from internal operations, retailers (including point-of-sale and store inventory data) and sentiment data from social media. Powerful machine learning algorithms use pattern recognition technology to analyze the inputs, dynamically determine predictive influence factors, create the most likely prediction of demand and publish daily forecasts to supply planning solutions for execution. The result is a 30-40% reduction in weekly forecast error and a 10-15% reduction in inventory. E2open invented demand sensing in 2002 and today, it is used to improve forecast accuracy for more than $250 billion in annual trade by some of the world’s largest companies.
The combination of demand sensing and E2open's Demand Signal Management solutions accelerate the systematic use of downstream data to make better supply decisions. This eliminates the need for companies to invest in the people, processes and systems to collect, cleanse and harmonize retailer data. Demand sensing is closely coupled to E2open's Supply Planning & Response solution, enabling an agile supply chain that creates a real-time response to real-time demand.
Collaborate with customers to gain visibility to demand in advance of orders and better serve customers at a lower cost. E2open’s Customer & Channel Collaboration solution streamlines the exchange of forecasts and commits with channel partners and customers. Timely visibility to projected demand directly from customers helps companies generate a more accurate consensus demand forecast. Customer satisfaction improves when orders are promised using E2open's Order Promising & Allocation solution, which considers existing commitments and channel priority when optimizing allocation. Better forecasts help companies reduce demand fulfillment lead times and the break the perpetual cycle of order expedites by procuring raw materials or positioning finished good in advance of real demand. Customers’ supply chains also become more stable, when their orders are promised and filled on-time and in-full.
Achieve the best possible demand predictions for any planning horizon and make better execution, tactical and strategic business decisions. The combination of E2open’s Demand Planning & Sensing and Supply Planning capabilities enable an agile supply response aligned with current market demand.